Mortgage Market Is Expected
To Ride Out the Latest Turmoil

The ramifications of the latest turmoil at Fannie Mae, and how it might ripple through the nation's $8 trillion mortgage market, have become the latest topic of discussion among mortgage lenders.

Market experts predicted little short-term harm to lenders' ability to originate mortgages, or to move them off their books into the securitization market dominated by Fannie and its smaller rival Freddie Mac. But a finding by the Securities and Exchange Commission that Fannie violated accounting rules raised concerns for some big...